why CYM is a Billion $ company in the making, page-1466

@Deme I'm talking about equity funds here, not potential financiers of the project. I don't have any first hand knowledge but I cannot imagine any conservative equity investment fund not looking at the cost curve when making a long term investment decision. In the long run, through the cycle, those producers at the top of the curve shut down when their mines start making losses. I accept at face value the claims that Metals X didn't know how to run Nifty but the fact is the previous operators shut it down because they couldn't sustain operations at a low enough cost when the copper market turned down. The previous operation at Nifty is an example of how projects at the higher end of the cost curve get stranded and operations get shut down when the price turns down.

@Deme
@PieChart
@DDBB
@FreeflyerNZ
@Bison8

Thanks for a very informative discussion. It is reasonable to assume that costs are going up industry wide and globally due to producer cost inflation. That only gives me reason to assume that CYMs costs are probably going to go up from what was used in the restart study. Furthermore, lets not ignore that the financing requirements have increased 25% since the restart study. Instead of looking to raise $200m we are now reportedly seeking $250m of funding ($200m senior debt plus mezzanine facility) to see us through to production. That said it is interesting to hear that the views of those that think we are likely to be much further down the cost curve than the 2020 figures would suggest.

I'm fare more bearish on overall economic conditions in the short to medium term than many here most likely. I see the copper price having a good chance of seeing US$3.50/lb sometime this year and I see no reason why it wouldn't drop down to $3 in a recession. Construction will be deferred. Consumer durable and discretionary spending will be deferred in a recession.

Where we might get to on the cost curve in the medium term as we scale up into a multi-mine mid-tier producer won't matter to the share price in the nearer term if the price of copper comes down in a recession. If someone has an investment horizon of five years or more then it won't matter.

I'll probably have to read back over the discussion again to absorb all the info provided. Thanks again. Most informative.